It mirrors a similar announcement in North America, where costs will rise by as much as six percent.The company is attributing the increase to rising oil, energy and component costs from its suppliers, as well as transport and logistics costs, according to Paul Atkinson, Managing Director A/NZ at Prysmian.“I can guarantee prices will increase,” Atkinson confirmed to iTNews.“We’re currently reviewing what we need to do. Until we quantify the impact of rising supplier costs on individual cable products, the exact impact is unknown… but I would suggest it will be in the ballpark of four to five percent.”Many materials used in the optical cable industry such as jacketing compounds and water blocking gels are direct by-products of the oil industry, and as such are subject to “substantial” price increases, Prysmian said in a statement.The increased price of oil has also had a direct adverse impact upon the manufacturing and transportation costs of optical cable. Additionally, other materials used in cables such as protective steel tapes are subject to the commodity price increases in the metals sector.Prysmian recently increased cable costs in its local energy cabling business by five to seven percent, “purely on raw materials [costs]”, Atkinson added.Formerly Pirelli Cables, Prysmian is a major global producer of cabling for the energy and telecommunications markets.
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